Allegiance Bank of North America Reports Operating Results for the Three and Six Month Periods Ended June 30, 2006.BALA CYNWYD Cynwyd is a small village in Denbighshire, Wales, about two miles south-west of the town of Corwen. It is home to a large factory, run by Ifor Williams Trailers. See also
See OTC Bulletin Board (OTCBB). :ABPA ABPA Allergic bronchopulmonary aspergillosis ), reported its sixteenth consecutive profitable quarter of operations for the quarter ended June June: see month. 30, 2006. C. Andrew Cook, President and Chief Executive Officer, noted the achievements of the organization in 2006 to date: --The second quarter of 2006 marked the Bank's sixteenth consecutive quarter of profitable operations. Earnings for the second quarter of 2006 increased to $233 thousand from $215 thousand during the year ago period, an increase of 8.4%. Earnings per share for the second quarter of 2006 were $0.05, which is equal to earnings per share in the second quarter of 2005. --Net income for the six months ended June 30, 2006 grew 18.2% over net income for the prior year period. Net income for the six months ended June 30, 2006 increased to $527 thousand or $0.11 per share from $446 thousand or $0.10 per share in 2005. --Increased an already strong net interest margin. For the six months ended June 30, 2006, the Bank expanded its net interest margin by 56 basis points from 4.91% for the prior year period to 5.47% for 2006; --Total assets increased by 16.5% year over year to $126.2 million at June 30, 2006 from $108.4 million a year earlier; --Total loans increased by $8.6 million or 9.5% to $99.5 million at June 30, 2006 from $90.9 million at June 30, 2005; --Opened a new branch, the Bank's third full service retail location, in King of Prussia King of Prussia, industrialized suburban area (1990 pop. 18,406), Montgomery co., SE Pa. It has glass and steel fabricating, food processing, printing and publishing, and varied manufacturing (textiles, liquified petroleum gas, water-treatment and electrical , a suburb suburb, a community in an outlying section of a city or, more commonly, a nearby, politically separate municipality with social and economic ties to the central city. In the 20th cent. of Philadelphia Philadelphia, ancient cities Philadelphia, name of several ancient cities. One was in Lydia, W Asia Minor (now W Turkey). At the foot of Mt. Tmolus and near the location of modern Alaşehir, it was founded in the 2d cent. B.C. on April 24, 2006; Net income for the second quarter of 2006 was $233 thousand or $0.05 per share compared to $215 thousand or $0.05 per share for the second quarter of 2005. The increase in earnings is primarily the result of a 24.2% increase in net interest income to $1.6 million from $1.3 million. These increases were offset by a $46 thousand or 42.2% decrease in non-interest income to $63 thousand in the second quarter of 2006 from $109 thousand in the prior year period. Coupled with the decrease in net-interest income, the Bank also had a 25.2% or $266 thousand increase in other expenses from $1.1 million during the second quarter of 2005 to $1.3 million in the second quarter of 2006. The increase in net interest income was primarily due to a $664 thousand increase in interest income driven by a 48.2% increase in the Bank's investment portfolio and a 9.5% increase in the Bank's loan portfolio. The increase in the operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. was related to the additional costs of the Bank's third branch office that opened on April 24, 2006. Net interest income for the second quarter of 2006 increased by 24.2% to $1.6 million from $1.3 million for the second quarter of 2005 reflecting continued growth in earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin , primarily investments and loans, and a higher net interest margin. The Bank opened its third office on April 24, 2006 to further support its franchise growth in attractive markets and stimulate stimulate /stim·u·late/ (stim´u-lat) to excite functional activity. stim·u·late v. To arouse a body or a responsive structure to increased functional activity. further loan and deposit growth while improving its deposit mix by emphasizing lower cost core deposit generation. Non-interest income decreased 42.2% in the second quarter of 2006 to $63 thousand compared to $109 thousand for the same period in 2005. The decrease in non-interest income was primarily due to a 41.1% or $41 thousand decrease in mortgage banking activities in the second quarter of 2006 as compared to the second quarter of 2005. For the six months ended June 30, 2006, the Bank earned $527 thousand or $0.11 per share compared to $446 thousand or $0.10 per share during the prior year period. Driven by continued growth in the investment and loan portfolio and higher interest rates, interest income for the first half of 2006 increased 40.8% to $4.9 million compared to $3.5 million reported in the year ago period. For the six months ended June 30, 2006, the net interest margin was 5.47% versus 4.91% for the first six months of 2005. Net interest income for the six months ended June 30, 2006 amounted to $3.2 million, a 28.6% increase over the $2.5 million recorded in the same six month period in 2005. Non-interest income for the first six months of 2006 was $107 thousand, a decrease of $114 thousand from the same period in 2005, mainly driven by mortgage banking revenues which decreased $116 thousand as compared to the six month period in 2005. Non-interest expenses amounted to $2.5 million for the six months ended June 30, 2005, a 27.1% increase from the $2.0 million reported in the first half of 2005. The increase in non-interest expenses reflects the Bank's overall growth in loans, deposits and the addition of a third branch office. Total assets increased 16.5% to $126.2 million at June 30, 2006 from $108.4 million at June 30, 2005. Investments increased by $7.2 million or 48.2% from $14.9 million at June 30, 2005 to $22.1 million at June 30, 2006 while loans increased by 9.5% or $8.6 million to $99.5 million at June 30, 2006 from $90.9 million one year earlier. Deposits increased 7.1% to $90.2 million at June 30, 2006 from $84.2 million at June 30, 2005. Short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowings increased to $11.3 million at June 30, 2006 from the $424 thousand reported twelve months ago as short-term borrowings were used to leverage investment purchases. At June 30, 2006, the Bank's allowance for loan losses equaled $1.7 million or 1.71% of total loans compared to $1.2 million or 1.33% of total loans at June 30, 2005. The Bank has $1.0 million in non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. at June 30, 2006 compared to $425 thousand at March 31, 2006. The largest of these non-accrual loans, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $763,000, is well secured by real estate collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although and the Bank anticipates little to no loss on this credit. The Bank is aggressively pursuing collection efforts on the remaining smaller credits. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. increased by $888 thousand to $23.2 million at June 30, 2006 compared to $22.3 million a year earlier. Stockholders' equity equaled 18.4% of total assets at June 30, 2006. Regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. capital ratios are all well in excess of the "well-capitalized" threshold The point at which a signal (voltage, current, etc.) is perceived as valid. . Commenting on the operating results, C. Andy Cook For the baseball player, see . Andy Cook (born Andrew Charles Cook, 10 August, 1969, in Romsey, Hampshire, England) is a former professional football player. , President and Chief Executive Officer stated, "We are pleased to be able to report increased earnings despite the costs associated with opening the Bank's third branch office in April 2006." Allegiance Bank of North America is a Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York state-chartered full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. commercial bank formed in 1999, headquartered in Bala Cynwyd, Pennsylvania Bala Cynwyd is a village in Lower Merion Township which is located in the Main Line in southeastern Pennsylvania, bordering the western edge of Philadelphia. It was originally two separate towns, Bala and Cynwyd, but is commonly treated as a single community. . The Bank offers a sophisticated package of services beyond traditional bank services, such as escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. account management, specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. real estate lending programs, internet banking and non-bank services including title insurance, real estate settlement services, financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against , life and health insurance and retirement programs through its three subsidiaries, Allegiance Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , Inc., AllSearch Abstract, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , and Paramount Paramount (pâr`əmount'), city (1990 pop. 47,669), Los Angeles co., S Calif.; inc. 1957. Originally a dairy region, it has become highly industrialized since the 1950s. Mortgage and Capital, LLC. The common stock of the Company is traded on OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. under the symbol ABPA. Statements contained in this news release, which are not historical facts, are forward looking statements, as that term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Amounts herein could vary as a result of market and other factors. Such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. Such forward-looking statements may be identified by the use of such words as "believe," "expect," "anticipate", "should," "planned", "estimated", and "potential". Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, expected or anticipated revenue, results of operations and business of the Company that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand, real estate values, and competition; changes in accounting principals, policies, or guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. ; changes in legislation or regulation; and other economic, competitive, governmental, regulatory, and technological factors affecting the Company's operations, pricing, products and services.
Consolidated Balance Sheet
(in Thousands)
Six Months Ended June 30,
-------------------------
2006 2005
------------ ------------
(unaudited) (unaudited)
Assets
Cash & Due from banks $1,668 $1,536
Interest Bearing demand deposits 264 240
Federal funds sold 118 -
------------ ------------
Cash & Cash Equivalents 2,050 1,776
Securities available for sale 22,102 14,948
Loans Receivable 99,467 90,867
Allowance for loan loss (1,703) (1,211)
------------ ------------
Net Loans Receivable 97,764 89,656
Bank premises & equipment 2,361 991
Accrued interest receivable 649 482
Other assets 1,306 511
------------ ------------
Total Assets $126,232 $108,364
============ ============
Liabilities & Stockholders Equity
Liabilities
Deposits:
Demand, non-interest bearing $6,724 $5,491
Demand, interest bearing 26,366 29,310
Savings 458 1,013
Time 56,657 48,380
------------ ------------
Total Deposits 90,205 84,194
Short-term debt 11,349 424
Long-term debt 708 727
Accrued interest payable 82 87
Other liabilities 666 598
------------ ------------
Total Liabilities 103,010 86,030
Stockholders Equity
Common Stock 4,781 4,781
Surplus 19,637 19,615
Accumulated deficit (910) (2,028)
Accumulated other comprehensive income (286) (34)
------------ ------------
Total Stockholders Equity 23,222 22,334
Total Liabilities & Stockholders Equity $126,232 $108,364
============ ============
Consolidated Income Statement
(in Thousands, except per share data)
Six Months Ended June 30,
-------------------------
2006 2005
------------ ------------
(unaudited) (unaudited)
Interest Income
Loans Receivable, including fees $4,587 $3,339
Securities 347 76
Other 15 101
------------ ------------
Total Interest Income 4,949 3,516
Interest Expense
Deposits 1,410 1,001
Short-term borrowings 326 11
Long-term borrowings 18 20
------------ ------------
Total Interest Expense 1,754 1,032
------------ ------------
Net Interest Income 3,195 2,484
Provision for loan loss 241 265
------------ ------------
Net Interest Income after Provision for
Loan Loss 2,954 2,219
------------ ------------
Other Income
Customer Service fees 33 42
Other 74 179
------------ ------------
Total Other Income 107 221
Other Expenses
Salaries and employee benefits 1,341 1,176
Occupancy 281 153
Equipment and data processing 267 214
Advertising, marketing and business
development 160 122
Professional fees 188 115
Bank shares tax 51 33
Other 246 181
------------ ------------
Total Other Expenses 2,534 1,994
------------ ------------
Income before Minority Interests 527 446
Minority interest in net loss of subsidiary - -
------------ ------------
Net Income $527 $446
============ ============
Earnings Per Share
Basic $0.11 $0.10
============ ============
Diluted $0.11 $0.10
============ ============
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